Striking a Balance

RetailLeaderAs localization becomes a competitive advantage, retailers are rethinking centralized management and opting for hybrid models.

Tough economic times often bring consolidation as stronger players gobble up struggling competitors. To make the mergers pay off financially, acquiring companies seek cost savings in a centralized organizational structure, where executives at headquarters make decisions that are carried out at all locations. Contrast that with boom periods, when retailers are more likely to allow general managers at the store or regional level to have more autonomy.

Paul Dolman-Darrall, Executive Vice President, Global Delivery and Strategy at Emergn, provides valuable insight into the challenges of moving towards a decentralized retail structure, in particular the often forgotten needs of the significant IT change that happens as companies change their operating models.

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